"The Indian Trusts Act, 1882"

The important points about "The Indian Trusts Act, 1882":

1. Definition of Trust: The Act defines a trust as an obligation annexed to the ownership of
property, arising out of confidence reposed in and accepted by the owner, for the benefit of
another or for a declared purpose.
2. Creation of Trusts: A trust is created when a person (settler) transfers ownership of property to
another (trustee) for the benefit of a third party (beneficiary). This transfer is based on
confidence and the trustee's responsibility.
3. Essential Elements of a Trust: To be valid, a trust must have certain elements like the intention
to create a trust, identifiable beneficiaries, and certainty of trust property.
4. Trustee's Duties: Trustees have a fiduciary duty to act in the best interests of the beneficiaries.
They must manage the trust property prudently and avoid conflicts of interest.
5. Rights of Beneficiaries: Beneficiaries have the right to enforce the trust, ensuring the trustee
complies with their duties. The Act provides remedies for breaches of trust.
6. Termination of Trusts: Trusts may be terminated under certain circumstances, and the Act
provides guidelines for the distribution of trust property upon termination.
7. Charitable Trusts: The Act recognizes charitable trusts for promoting charitable purposes. Such
trusts enjoy specific privileges and exemptions.
8. Public and Private Trusts: The Act distinguishes between public and private trusts, each
subject to specific rules and regulations.
9. Registration of Trusts: While not mandatory, registering a trust provides legal benefits,
including better evidentiary value.
10. Applicability and Amendments: The Act is applicable throughout India, except in Jammu and
Kashmir. It has been amended to adapt to changing legal and social contexts.

Understanding these key points is essential for anyone dealing with trusts, as the Act forms the
legal foundation for trust-related matters in India.

“Societies Registration Act, 1860”

The important points about the "Societies Registration Act, 1860" :

1. Objective of the Act: The Societies Registration Act, 1860 aims to provide for the registration
of societies with charitable, literary, scientific, or other similar purposes.
2. Definition of Society: The Act defines a society as an association of individuals united by a
common interest and working together for the promotion of charitable, literary, scientific, or
other purposes.
3. Formation of Societies: Societies can be formed by a group of individuals (minimum seven)
who come together with a common objective. They need to create a memorandum of association
and rules and regulations for the functioning of the society.
4. Registration Process: Societies need to register with the Registrar of Societies in the state where
they operate. The application for registration should include details about the society's
objectives, names of members of the governing body, and other relevant information.
5. Memorandum of Association: This document outlines the aims and objectives of the society,
the names of the governing body members, and other essential details. It must be submitted
during the registration process.
6. Rules and Regulations: Societies are required to draft rules and regulations governing their
internal functioning. These rules typically cover membership criteria, meetings, elections, and
other operational aspects.
7. Governing Body: Societies are managed by a governing body or council, which is responsible
for making decisions and overseeing the activities of the society.
8. Rights and Liabilities of Members: Members of a society have defined rights and liabilities as
per the rules and regulations. They usually have the right to participate in decision-making
processes.
9. Amendments to Rules: Societies can amend their memorandum of association or rules and
regulations, subject to the provisions of the Societies Registration Act.
10. Accounts and Audit: Societies are required to maintain proper accounts and get them audited
annually. The audit report and statement of accounts must be filed with the Registrar.
11. Penalties for Non-compliance: The Act specifies penalties for non-compliance with its
provisions, including fines and potential dissolution of the society.
12. Applicability and Amendments: The Societies Registration Act is applicable throughout India.
Over the years, it has undergone amendments to adapt to changing circumstances.

Understanding these key points is crucial for individuals involved in the formation and
management of societies, as compliance with the Societies Registration Act, 1860 is essential for
legal recognition and smooth operation.

Charitable Endowments Act, 1890

The Charitable Endowments Act, 1890, is a legislation that pertains to the administration and
management of properties and funds dedicated to charitable purposes. Here are the important
points about the Charitable Endowments Act, 1890:

1. Objective of the Act: The Act aims to regulate the administration of properties and funds set
apart for charitable or religious purposes.
2. Definition of Charitable Purpose: The Act broadly defines charitable purpose to include relief
of poverty, advancement of education, promotion of health, and other objects beneficial to the
community.
3. Appointment of Commissioners: The Act allows the government to appoint Commissioners to
oversee and administer charitable endowments. These Commissioners are responsible for
ensuring that the endowments are utilized for the intended charitable purposes.
4. Charitable Endowments: The Act applies to properties and funds specifically dedicated to
charitable or religious purposes, such as temples, mosques, educational institutions, hospitals,
and other similar entities.
5. Registration of Endowments: Charitable endowments are required to be registered under this
Act. The registration process involves providing details about the endowment, its objectives, and
the properties and funds associated with it.
6. Commissioners' Powers: The Commissioners appointed under the Act have various powers,
including the power to inquire into the administration of charitable endowments, settle schemes
for their management, and ensure proper utilization of funds.
7. Management Schemes: The Act empowers the Commissioners to frame management schemes
for the proper administration of charitable endowments. These schemes outline how the
endowments should be managed, who the trustees or managers should be, and other relevant
details.
8. Inspection of Accounts: The Commissioners have the authority to inspect the accounts and
records of charitable endowments to ensure transparency and proper financial management.
9. Prohibition of Alienation of Endowment Property: The Act prohibits the alienation of
properties dedicated to charitable endowments, ensuring that such assets are preserved for the
intended charitable purposes.
10. Penalties for Violations: The Act imposes penalties for violations, including unauthorized
alienation of endowment property or failure to comply with the regulations outlined in the Act.
11. Applicability and Amendments: The Charitable Endowments Act, 1890, is applicable across
India. While the Act has not undergone frequent amendments, its provisions remain relevant for
the regulation of charitable and religious endowments.

Understanding the Charitable Endowments Act is essential for individuals involved in the
management and administration of properties and funds dedicated to charitable purposes, as it
provides a legal framework for their proper governance.

Foreign Contribution (Regulation) Act, or FCRA

The Foreign Contribution (Regulation) Act, or FCRA, is an Indian legislation that regulates
the acceptance and utilization of foreign contributions and donations by individuals, associations,
and non-governmental organizations (NGOs). Here are the important points about FCRA:

1. Objective of the Act: The primary objective of FCRA is to regulate the acceptance and
utilization of foreign contributions or donations in the interest of national security.
2. Applicability: FCRA applies to individuals, associations, and NGOs that intend to receive
foreign contributions or donations.
3. Registration and Prior Permission: Organizations seeking to receive foreign contributions
must either register under FCRA or obtain prior permission from the Ministry of Home Affairs,
Government of India.
4. Prohibited Activities: FCRA prohibits the use of foreign contributions for activities that might
affect the country's sovereignty, integrity, and national interest. Political parties, government
servants, and organizations of a political nature are also restricted from receiving foreign
contributions.
5. Registration Renewal: Registered organizations under FCRA need to apply for renewal of their
registration within the specified timeframe to continue receiving foreign contributions.
6. Bank Account: Entities registered under FCRA are required to maintain a designated bank
account exclusively for foreign contributions.
7. Utilization of Funds: Foreign contributions must be used only for the specific purposes
mentioned in the approval or registration. Any diversion from the designated purpose is strictly
prohibited.
8. FCRA-NGO Portal: The Ministry of Home Affairs has introduced an online portal for FCRA
registration and other related processes, providing a streamlined and transparent system.
9. Monitoring and Inspection: The government has the authority to monitor and inspect the
accounts and records of organizations receiving foreign contributions to ensure compliance with
FCRA regulations.
10. Cancellation of Registration: The government can cancel the registration of an organization
under FCRA if it is found to be in violation of the Act or if the organization fails to comply with
the renewal requirements.
11. Reporting Requirements: Organizations registered under FCRA are required to submit annual
reports detailing the inflow and utilization of foreign contributions.
12. Penalties and Offenses: FCRA specifies penalties for violations, including fines and
imprisonment for individuals or entities found guilty of contravening the provisions of the Act.
13. Amendments: FCRA has undergone amendments to strengthen regulatory mechanisms and
enhance transparency in the receipt and utilization of foreign contributions.

Understanding and compliance with FCRA regulations are crucial for entities involved in
receiving foreign contributions in India. Non-compliance can result in serious consequences,
including the cancellation of registration and legal action.

Income Tax Act, 1961

The Income Tax Act, 1961 is the primary legislation in India that governs the taxation of income.
Here are the important points about the Income Tax Act, 1961:

1. Objective: The Income Tax Act is designed to levy and collect taxes on income earned by
individuals, businesses, and other entities in India.
2. Applicability: The Act applies to all residents and certain non-residents who earn income in
India. It covers a wide range of income sources, including salaries, business profits, capital gains,
and more.
3. Residential Status: The Act classifies individuals as residents or non-residents based on their
stay in India during a financial year. The tax liability is determined based on the residential
status.
4. Income Tax Slabs: The Act prescribes different income tax slabs for individuals, specifying the
rates at which income is taxed. These slabs may vary for individuals, Hindu Undivided Families
(HUFs), and other entities.
5. Income Heads: The Act categorizes income into various heads, such as salary, house property,
business or profession, capital gains, and other sources. Each head has its own set of rules for
computation and taxation.
6. Exemptions and Deductions: The Act provides for various exemptions and deductions to
reduce the taxable income. Examples include exemptions for certain allowances, deductions for
investments under Section 80C, and deductions for medical insurance premiums under Section
80D.
7. Tax Deducted at Source (TDS): The Act mandates TDS on certain types of income, where the
payer deducts tax at the source and remits it to the government. Common instances include
salary, interest, and professional fees.
8. Advance Tax: Taxpayers are required to pay taxes in advance, known as advance tax, if their tax
liability exceeds a specified threshold. This is typically paid in installments during the financial
year.
9. Assessment and Filing of Returns: The Act outlines the procedures for the assessment of
income and the filing of income tax returns. Taxpayers are required to file their returns annually,
providing details of their income, deductions, and taxes paid.
10. Penalties and Prosecution: Non-compliance with the provisions of the Income Tax Act can
lead to penalties and prosecution. Penalties may be imposed for late filing of returns,
understatement of income, or other violations.
11. Goods and Services Tax (GST): While the Income Tax Act primarily deals with direct taxes,
the Goods and Services Tax Act, introduced in 2017, deals with indirect taxes. Both acts together
form the comprehensive tax framework in India.
12. Amendments and Updates: The Income Tax Act undergoes amendments regularly to adapt to
changing economic conditions and to address emerging tax issues.

Understanding the provisions of the Income Tax Act, 1961 is crucial for individuals and
businesses to ensure compliance with tax regulations and optimize their tax liabilities. It is
advisable to seek professional advice for accurate interpretation and application of the Act.

INCOME TAX EXEMPTIONS

The income tax exemptions under Sections 11, 12, 80G, and 35AC of the Income Tax Act, 1961:

1. Section 11 and 12: Exemption for Charitable Trusts and Institutions

 Objective: These sections provide exemptions to income earned by charitable and
religious trusts or institutions.
 Conditions for Exemption: Charitable trusts and institutions must apply their income
for charitable or religious purposes within India. The income should not be used for the
benefit of any particular individual or group of individuals.
  Exemption on Accumulated Income: Section 11 allows for exemption on income
accumulated or set apart for application to charitable or religious purposes.
 Section 12(1)(b): Deals with exemptions for income applied to charitable purposes in
India.
 Section 12A: Prescribes the requirement of registration for availing exemptions under
Sections 11 and 12.
2. Section 80G: Deductions for Donations to Charitable Institutions
 Objective: This section encourages individuals and entities to contribute to charitable
institutions by providing deductions on donations made.
 Eligibility of Institutions: Only donations to institutions registered under Section 12A
are eligible for deductions. It is crucial to check the registration status before making
donations.
 Deduction Limits: Donors can claim deductions ranging from 50% to 100% of the
donated amount, depending on the nature of the institution and the applicable conditions.
 Mode of Payment: Donations made in cash above a certain limit are not eligible for
deductions. It is advisable to contribute through banking channels.
 Applicable Forms: Donors should ensure that they receive a valid receipt in the
prescribed format (Form 80G) for claiming deductions.
3. Section 35AC: Expenditure on Approved Projects or Schemes
 Objective: This section encourages businesses to contribute to specified projects or
schemes for social and economic development.
 Eligibility of Projects: Only projects approved by the National Committee for
Promotion of Social and Economic Welfare (NCPSAE) qualify for benefits under Section
35AC.
 Deduction Limits: Businesses can claim a 100% deduction on the amount spent on
approved projects under this section.
 Validity Period of Approval: The approval for projects under Section 35AC is time-
bound. Businesses should ensure that the project is still approved at the time of claiming
deductions.
 Applicable Forms: Details of the expenditure should be submitted in the prescribed form
for claiming deductions.

Understanding these sections is important for individuals, businesses, and charitable institutions
to avail themselves of tax benefits and deductions while contributing to social and charitable
causes. It is recommended to consult with tax professionals for accurate guidance and
compliance.